This article is from the Australian Property Journal archive
Chairman of RUN Corporation has apologised for the disastrous share price fall since it launched two and a half years ago.
RUN chief Frank Cicutto told investors at its AGM yesterday: "I would like to apologise to our shareholders for the company’s disappointing share price performance."
RUN’s share price closed yesterday at 16 cents after listing at $1.00.
"I know it is no comfort to shareholders that the co-founders, Board and management have also suffered. Additionally, co-founder working capital loans that were used to establish the business, were converted to equity when the Company floated and then escrowed through to August 2007.
"We believe we have now addressed the operational issues we faced earlier and that the company has excellent leadership from Nathan Cher who stepped in as interim CEO in May following Paul Vallanti’s resignation," Cicutto added.
Cicutto said that RUN’s objective over the medium term is to improve the quality of ots service offering.
He added that RUN would seek a capital raising of between $6 to $10 million during this financial year to stabilise the company’s future growth plans.
It was revealed at the AGM that chief executive Nathan Cher and director Sam Herzberg had advanced RUN in excess of $2 million as a loan.
RUN has 20,000 properties under management, 270 staff, 24 agents and 168 agents reps.
By Adam Parsons
